Correlation Between Shuhua Sports and Dosilicon
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By analyzing existing cross correlation between Shuhua Sports Co and Dosilicon Co, you can compare the effects of market volatilities on Shuhua Sports and Dosilicon and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Shuhua Sports with a short position of Dosilicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Dosilicon.
Diversification Opportunities for Shuhua Sports and Dosilicon
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shuhua and Dosilicon is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports Co and Dosilicon Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dosilicon and Shuhua Sports is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Shuhua Sports Co are associated (or correlated) with Dosilicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dosilicon has no effect on the direction of Shuhua Sports i.e., Shuhua Sports and Dosilicon go up and down completely randomly.
Pair Corralation between Shuhua Sports and Dosilicon
Assuming the 90 days trading horizon Shuhua Sports Co is expected to under-perform the Dosilicon. In addition to that, Shuhua Sports is 1.09 times more volatile than Dosilicon Co. It trades about -0.06 of its total potential returns per unit of risk. Dosilicon Co is currently generating about 0.12 per unit of volatility. If you would invest 2,372 in Dosilicon Co on October 18, 2024 and sell it today you would earn a total of 194.00 from holding Dosilicon Co or generate 8.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shuhua Sports Co vs. Dosilicon Co
Performance |
| Timeline |
| Shuhua Sports |
| Dosilicon |
Shuhua Sports and Dosilicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and Dosilicon
The main advantage of trading using opposite Shuhua Sports and Dosilicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports position performs unexpectedly, Dosilicon can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Dosilicon will offset losses from the drop in Dosilicon's long position.| Shuhua Sports vs. Tibet Huayu Mining | Shuhua Sports vs. Anhui Jinhe Industrial | Shuhua Sports vs. Bank of Suzhou | Shuhua Sports vs. Qingdao Choho Industrial |
| Dosilicon vs. East Money Information | Dosilicon vs. Dawning Information Industry | Dosilicon vs. Shuhua Sports Co | Dosilicon vs. Emdoor Information Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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